What you need to know about the Senate’s $2.1 trillion tax bill
The Senate passed its version of the tax bill Tuesday, but only after the House rejected the measure, giving President Donald Trump and his Republican allies the leverage they needed to quickly push it through the chamber.
Senate Majority Leader Mitch McConnell, R-Ky., said the legislation would be “a final vote for the American people” and was expected to pass.
It would cut taxes for businesses, workers, and individuals, but not for individuals and couples making more than $1 million per year.
The House is expected to vote Thursday.
Republicans control the Senate by a razor-thin margin, but Democrats are eager to make good on their promises to push the legislation through the Senate without Democratic support.
The Senate version would slash the corporate tax rate from 35 percent to 20 percent, cut the corporate income tax rate to 15 percent, and slash the individual income tax rates to 35 percent and 15 percent.
Republicans want to eliminate the estate tax, which has hit middle-class and lower-income Americans the hardest.
But many Republicans are still concerned about the legislation’s impact on the poor.
The Congressional Budget Office estimated the bill would cost $1.7 trillion over the next decade.
Many of the GOP’s top priorities are at risk, with the Senate version’s biggest changes to Medicaid, Medicare, and Social Security.
The bill also includes a repeal of Obamacare’s expansion of Medicaid, and some Republicans want an amendment to the bill to repeal the tax credits for child care.
Republicans also want to expand a tax credit that allows companies to offset their tax bills for employees’ health insurance costs.
The Tax Policy Center estimates the bill will raise $1,800 per family for each person earning $75,000.
The nonpartisan Congressional Budget Analytics estimated that the tax changes would reduce federal revenue by $2,854 per family, or about $8,600 for every family.
Republicans are trying to win over as many Republicans as possible in the Senate.
If Democrats vote against the bill, they could open the door to a bipartisan agreement.
The tax legislation would raise taxes on corporations, which could be the biggest obstacle for Democrats.
Corporations would be required to report their tax revenue to the Internal Revenue Service.
The Internal Revenue Services would have to report these amounts to the Treasury Department.
And companies that don’t disclose their tax returns would have their taxes collected.
The legislation would also eliminate the deduction for state and local taxes, which is commonly called the “corporate rate.”
In the Senate, Democrats would be able to vote to repeal this deduction for states and cities that choose to expand Medicaid.
The GOP proposal would also end the deduction that allows the wealthy to deduct state and municipal property taxes paid by taxpayers with lower incomes.
In other provisions, the Senate would also repeal the deduction in some cases for interest on the debt.
Democrats say that could have a chilling effect on businesses that want to borrow.
But Republicans are not backing down from their plans to cut taxes.
The most important provision of the Senate bill is a tax cut for individuals.
The new tax rate would be 15 percent on individual income of up to $5 million for married couples filing jointly.
The plan also eliminates the alternative minimum tax for families with four or more children, and for individuals earning more than two million dollars per year, it would be phased out.
But this change does not apply to married couples making less than $150,000, and married couples earning more.
Under the Senate plan, individuals earning $50,000 or more would be exempt from the alternative-minimum tax and the alternative surtax.
They would not be required, however, to pay any additional taxes on the amount they earn.
Republicans say this change will allow the middle class to stay above the poverty line and avoid the tax cuts they want to take away from most Americans.
But they also argue it will encourage businesses to invest and create jobs.
They say this is a win for the middle-income family, and that businesses will be able continue to grow while cutting their tax bill.
The $1 trillion cut in taxes would be offset by a tax hike of $1 on those earning more money than $250,000 a year.
Republicans argue this change would create jobs and create millions of new jobs.
But it’s unclear how many jobs these jobs will create.
Some analysts have suggested that the plan would hurt the middle classes, but others have argued that it will lead to more people moving to cities and towns.